what is the best way to finance the purchase and renovation of a property?

iwant2renovate

My wife and i have recently sold our house. we have seen a property we would like to buy and renovate by adding an extension and then refurbing throughout. Our options seem to be to purchase the property by putting down only 10% and then funding the extension using our savings. We will then have a shortfall of aprox 30k to find to complete the entire project. Having consulted IFAs most 10% mortgages have a tie in of a minimum of two years and although will revalue to release the equity to fund the continued works the mortgage will remain at the same interest rate and the increased lending at whatever the lenders rate is at the time. Ideally we would like to have the 30k loaned prior to starting to complete all works in one go and then only revalue when complete. estimated loan to value when finished will be aprox 2/3. Any advice or suggestions on the cheapest and best way to go about this, if at all?.

Sammy85_2

Most lenders are unwilling to lend beyond the 90% LTV and especially not on what a properties future valuation will be after/during renovation due to the unpredicable nature of the housing market.

You may be able to get an unsecured loan, but it will probably be very costly.

We are in a similar situation. We have savings to build the shell of the extension and first fix, but after that it will be piece by piece as and when we can afford it. After looking at a variety of mortgage and loan options this is the best option we can find.